A news release said the Payden/Wilshire Longevity Funds consist of four target maturity portfolios – 2010, 2020, 2030 and 2040 – that are designed to take investors through retirement.
“Up until now, most target maturity funds have been designed to manage retirement assets for individuals until they reach their retirement age, but not afterwards,” said Gregory P. Brown, principal at Payden & Rygel and the firm’s lead in launching the new fund family.
According to the news release, Wilshire’s research found that many glide paths turn conservative too quickly, while others take on unacceptable risk, disregarding the investor’s liabilities and funding status.
The blending of the traditional asset-only efficient frontier with the liability-aware surplus frontier is a proprietary technique developed by Wilshire. The surplus frontier is the curve that gives preference to asset classes that will maximize the likelihood of having a surplus starting at retirement.
The announcement said Payden will lead the distribution and servicing effort for the Longevity Funds, focusing on financial intermediaries and third party administrators in the defined contribution market. Wilshire will serve as sub-adviser, responsible for construction of the portfolios, including the asset allocation, the selection of the underlying investments, and the ongoing adjustments to the glide path.
More information can be found at http://www.payden.com.